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(Solved): The present value of $220,000 to be received in five years at an interest rate of 16%, compounded an ...
The present value of $220,000 to be received in five years at an interest rate of 16%, compounded annually, is $104,742.
Required:
Using a present value table (Table 6-4 and Table 6-5), calculate the present value of $220,000 for each of the following items (parts a—f) using these facts:
Note: Use the appropriate value(s) from the tables provided. Round your PV factors to 4 decimal places and final answers to the nearest whole dollar.
- Interest is compounded semiannually.
- Interest is compounded quarterly.
- A discount rate of 12% is used.
- A discount rate of 20% is used.
- The cash will be received in three years.
- The cash will be received in seven years.
\begin{tabular}{|l|} \hline a. Present value \\ \hline b. Present value \\ \hline c. Present value \\ \hline d. Present value \\ \hline e. Present value \\ \hline f. Present value \\ \hline \end{tabular}